ReNeuron licenses rights to its CTX and hRPC cell therapy programmes to Fosun Pharma for Chinese market. ReNeuron to receive upfront, near term and estimated success-based milestone payments of $104.8 million and double-digit royalties on sales.
Under the terms of the Agreement, Fosun Pharma will fully fund the development of ReNeuron’s CTX and hRPC cell therapy programmes in China, including clinical development and subsequent commercialisation activities. Fosun Pharma has also been granted rights to manufacture the licensed products in China.
Yifang Wu, President & Chief Executive Officer of Fosun Pharma, said:
“We are very honored to collaborate with ReNeuron, one of the leading cell-based therapeutics companies worldwide at clinical stage. The licensed products and unique stem cell platforms will bring a lot of strategic synergies with our current business, addressing huge unmet needs in the Chinese market. Regenerative Medicine is one of the most advanced areas with various cutting-edge technologies. The collaboration with ReNeuron will contribute to the strategic leading position of Fosun Pharma in this area in China, and also help us to enrich the pipelines for severe disease medical solutions.”
ReNeuron will receive $7.9 million on entering into the Agreement, up to $7.9 million in near-term operational milestones and up to $10.5 million in future regulatory milestone payments. In addition, post-launch profit threshold milestone payments are due at a rate of 5% of annual net profits derived from the licensed products in the year the relevant net profit milestones are exceeded, leading to total estimated milestone payments of $104.8 million provided all milestones and profit thresholds are successfully met.
ReNeuron will also receive tiered royalties at rates between 12% and 14% on sales of the licensed products in the Chinese market. The Company will be responsible for supplying CTX and hRPC cells to Fosun until technical transfer activities have been completed.
Olav Hellebø, Chief Executive Officer of ReNeuron, said:
“We are delighted to partner our cell therapy programmes with Fosun Pharma, one of China’s largest and most distinguished healthcare companies. This agreement furthers our core strategy to build shareholder value through the clinical development and commercialisation of our cell therapy programmes. China represents a significant market opportunity for our products and we look forward to working with Fosun Pharma to ultimately bring these treatments to the many patients in China who may benefit from them.”